Question

An expanding economy puts stress on the manufacturing ability of a company. When a firm turns business down during periods of economic expansion, a problem exists in the area of __________.

Answer 1

An expanding economy puts stress on the manufacturing ability of a company. When a firm turns business down during periods of economic expansion, a problem exists in the area of capacity utilization.

The capacity usage rate measures the proportion of a company's potential output this is truly being found out. The capability usage price of an organization or a national economy may be measured so one can provide perception into how nicely its miles reach their capacity.

Efficiency is commonly expressed as a percent of the actual output to the anticipated output. capacity usage, on the other hand, is a degree of ways well an organization makes use of its efficient capability. it's the relationship between capability or theoretical most output and the real production output.

Ability utilization is a degree of the extent to which the productive potential of a commercial enterprise is getting used by potential users may be calculated by way of: real. output / maximum output x a hundred. results of operating beneath capability.

Learn more about capacity utilization here: brainly.com/question/24203215

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